The bear attack in global equity markets has put off as many as 46 funding deals worth $60 billion - a jerk to the crossover corporate acquisition spree as some even plan to shelve the merger plans, the Wall Street Journal reported on Friday. The American paper said with banks acting tough on financing deals, companies may have to defer their purchase plans.
"Banks have been left with a debt of about $400 billion in uncompleted management buyouts and leveraged buyouts around the world that they had planned to sell on to investors," it said quoting data compiled by an asset management company.
Private-equity firms will be the worst affected as they rely on leveraged finance. Corporate buyers can finance their acquisitions through cash or the sale of new shares, as well as debt.
Fears of a credit crunch in the US, the world's biggest economy, have lead to the meltdown of stock markets worldwide. On August 1, the Dow Jones Industrial Average went 0.24 per cent down, while the Nasdaq Components Index dipped 0.71 per cent.
Japan's Nikkei 225 Stock Average lost 2 per cent to 16,900.84, while the Topix index slipped 2.1 per cent.
Last year, lenders provided about $4 trillion loans and over $837 billion bonds, while no funding agreement was cancelled, the American magazine quoted a survey carried out by global consulting firm.
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